"The government of India in the budget has imposed a 10 per cent export duty on sale of ilmenite and five per cent duty on upgraded ilmenite. This has already impacted us. We are already feeling the pinch of it in places like Karnataka and Gujarat...," Mining Engineers' Association of India National President Arjeth Bagchhi told reporters here.
Noting that the industry was contributing about 2.5 per cent of country's GDP employing about 50 lakh people, he said Indian ilmenite, which was accepted only in China, may be stalled due to the export duty as China may look for ilmenite from South Africa.
"There is a possibility that ilmenite from South Africa may be exported to China due to its quality and price," he said.
"Export duty will be a hurdle for the industry to compete globally," he said.
Asked whether the association had approached the Centre on the matter, he said they had made representations to Mining and Finance department.
"So far there is no response from them. Actually, this decision (to impose 10 per cent export duty) has put all of us (industry) in soup," he said.